Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from both the prior quarter and the year-ago quarter. Free cash flow improved, with the margin turning positive compared to a negative margin one year earlier.
- Operating cash flow rose relative to both comparison periods, while capital expenditure decreased sequentially and versus the prior year, supporting the improvement in free cash flow. Free cash flow margin strengthened sequentially and turned positive year-over-year.
- Compared with the immediately preceding quarter, revenue was lower but free cash flow was higher due to increased operating cash flow and reduced capital expenditure. Versus the same quarter one year earlier, revenue was lower while operating cash flow was higher, and free cash flow improved from a deficit to a surplus.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.7B
Cash generated by operations before capital spending.
CapEx
$1.8B
Capital spending and related asset purchases.
FCF margin
4.6%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2024-06-30 | $47.8B | $5.5B | $2.1B | $3.4B | 7.1% |
| 2024-09-30 | $46.2B | $5.5B | $2.0B | $3.5B | 7.6% |
| 2024-12-31 | $48.2B | $3.0B | $2.5B | $530.0M | 1.1% |
| 2025-03-31 | $40.7B | $3.7B | $1.8B | $1.9B | 4.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 393.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating cash flow improvement
Operating cash flow rose significantly from both the prior quarter and the year-ago quarter. This increase was the strongest observable contributor to the higher free cash flow, particularly as capital expenditure was lower.
Stronger operating cash flow, combined with reduced capital spending, underpinned the positive swing in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose relative to both comparison periods, while capital expenditure decreased sequentially and versus the prior year, supporting the improvement in free cash flow. Free cash flow margin strengthened sequentially and turned positive year-over-year.
Compared with the immediately preceding quarter, revenue was lower but free cash flow was higher due to increased operating cash flow and reduced capital expenditure. Versus the same quarter one year earlier, revenue was lower while operating cash flow was higher, and free cash flow improved from a deficit to a surplus.
Monitor the progression of revenue generation, as it declined compared to both the prior quarter and the year-ago period.